Hi Jd1234, thanks for posting the questions.
Yes, in general, "live in IP caregiver" income is not taxable. You might receive a W-2 with box 1 no taxable wage, and box 2 no Federal income tax withheld. Please confirm with the agency in charge that you will neither receive a W-2 or a W-2 with box 1 and Box 2 blank.
Please refer to "Certain Medicaid Waiver Payments May be Excludable From Income" section on "Individual Care Provider Questions"
https://www.irs.gov/individuals/certain-medicaid-waiver-payments-may-be-excludable-from-income
Not having earned income may adversely impact the Earned Income Credit calculation if applicable in your tax situation.
Not having Federal income withheld means you have less payment to calculate balance due/refund.
Please use TurboTax TaxCaster to pro forma your tax year 2022 income tax filing result.
TurboTax Tax Calculator 2021
https://turbotax.intuit.com/tax-tools/calculators/taxcaster/
Hope the above helps.
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